Cost to Hire an Employee in Australia from the US or UK (2026)

• Gross salary. Australian salaries are usually quoted per year and excluding super. Check whether an offer is 'plus super' or a package that includes it.
• Employer on-costs. The superannuation guarantee (12%), state payroll tax and workers' compensation insurance. For an A$110,000 salary in NSW these come to A$20,042 a year.
• The EOR fee, if you hire without your own Australian company. Published starting prices run from US$199 to US$699 per employee per month. See the cheapest EOR providers.

Shown for New South Wales (payroll tax 5.45%) and an office role (workers' compensation 0.77%), excluding the EOR fee. Super stops at the maximum contribution base, so on-costs are a smaller share of very high salaries.

Payroll tax is set by each state and territory. At an A$110,000 salary, with the same super and workers' compensation:

• Minimum wage. A$26.44 / hour, A$1,004.90 / week (from 1 July 2026). Many roles are also covered by a modern award with higher minimum rates.
• Annual leave. Four weeks of paid annual leave a year for full-time and part-time employees, paid at the base rate for ordinary hours; five weeks for employees defined as shiftworkers. Untaken leave is paid out on termination.
• Sick and carer's leave. Ten days of paid sick and carer's leave a year for full-time employees (pro rata for part-time: 1/26 of ordinary hours). It accrues from the first day and unused leave carries over to the next year.
• Notice. Minimum employer notice under the NES: 1 week (1 year's service or less), 2 weeks (over 1 to 3 years), 3 weeks (over 3 to 5 years), 4 weeks (over 5 years), plus an extra week for employees over 45 with at least 2 years' continuous service. It can be worked or paid in lieu, applies during probation too, and isn't required for serious misconduct.
• Unfair dismissal. Employees can claim unfair dismissal after 6 months' employment (12 months with a small business of fewer than 15 employees), if covered by an award or enterprise agreement or earning less than the high income threshold. Claims go to the Fair Work Commission within 21 days, which can order reinstatement or compensation.
• Super timing. From 1 July 2026, 'Payday Super' requires employers to pay super for each payday rather than quarterly, calculated on 'qualifying earnings'. The rate is still 12%, and the Small Business Superannuation Clearing House has closed. See Payday Super explained.
• Labour hire licensing. In Queensland and Victoria an EOR arrangement can count as labour hire, which needs a licence. See EOR and labour hire licensing.

Without an Australian entity you can hire through an EOR, set up your own Pty Ltd, or engage a genuine independent contractor. An EOR is usually quickest for one to a few hires; a Pty Ltd makes more sense for a growing team or if you sell to Australian customers.

Engaging long-term, integrated staff as contractors carries sham-contracting risk, because Australian law looks at the real substance of the relationship. See EOR vs local entity and EOR vs contractors.

• Annual leave loading, where an award or agreement requires it (the estimator offers 17.5% on four weeks' leave as an option; check the award).
• Redundancy pay and notice if the employment ends, and long service leave after many years' service.
• Benefits above the legal minimum, and fringe benefits tax on non-cash benefits.
• EOR extras such as a deposit, setup fee or currency conversion margin. Model these in the estimator's first-year extras.